Reliance Industries Ltd (RIL) is set to invest Rs 65,000 crore over the next five years to establish 500 compressed biogas (CBG) plants across Andhra Pradesh. This marks RIL’s largest investment outside Gujarat and is part of its renewable energy push.
Each of these plants will require an investment of Rs 130 crore and will be developed on wasteland areas in the state. According to Andhra Pradesh’s government, the initiative is expected to create around 250,000 direct and indirect jobs.
The project proposal was finalized during a meeting between Anant Ambani, who heads RIL’s clean energy division, and Nara Lokesh, Andhra Pradesh’s IT minister and head of the job creation sub-committee. A memorandum of understanding (MoU) between RIL and the Andhra Pradesh government will be signed in Vijayawada, with Chief Minister N Chandrababu Naidu in attendance.
Government Support for Biofuel Investment
As part of its new integrated clean energy policy, the Andhra Pradesh government is offering significant incentives for biofuel projects. These include a 20% capital subsidy on investments in CBG facilities for the first five years, along with full reimbursement of state goods and services tax (SGST) and electricity duties for the same period.
Confirming the investment, Minister Lokesh emphasized the importance of job creation, stating that this initiative would be transformative for the state’s youth
Fast-Track Execution
The investment proposal was approved within 30 days, demonstrating Andhra Pradesh’s commitment to quick business execution. Lokesh highlighted the project’s potential to rejuvenate wastelands, improve farmers’ livelihoods by promoting energy crop cultivation, and provide an additional income of Rs 30,000 per acre annually.
This Rs 65,000 crore biogas initiative is poised to bring substantial economic benefits to Andhra Pradesh, with expected revenue generation of Rs 57,650 crore over the next 25 years through taxes and other contributions.
